“We want to ensure Australia has a strong social security safety net to protect our most disadvantaged,” said Minister for Social Services Amanda Rishworth. Source: Wikimedia Commons.
Over 4.7 million Australians will receive an increase to their social security payments beginning 20 September from a large indexation rise.
The government announced the largest indexation increase to payments in more than 30 years for allowances, and 12 years for pensioners.
“We want to ensure Australia has a strong social security safety net to protect our most disadvantaged,” said Minister for Social Services Amanda Rishworth.
“Our guiding principles as a Government are ensuring no one is left behind and no one is held back and this indexation increase will help those on Government payments keep up with the cost of living.”
JobSeeker Payment, Parenting Payment, ABSTUDY and Rent Assistance will increase.
From this month, singles aged over 22 without children will have their Jobseeker Payment increase by $25.70 a fortnight to make it $677.20 per fortnight, including the Energy Supplement.
Single parents will have an extra $35.20 a fortnight that takes Parenting Payment to $927.40 including the Energy Supplement.
Couples on Jobseeker or Parenting Payments will get a $23.40 increase for their fortnightly rate to become $616.60 including Energy Supplement.
Edwina MacDonald, acting CEO for the Australian Council of Social Service (ACOSS) which has been calling for at least a 35 per cent increase to social security payments, said “it’s really just a drop in the ocean at this point”.
“So, currently jobseeker is at $46 a day, youth allowance is at $38 a day and what we need in order to bring it up to the poverty line, is to bring it up to at least $70 a day,” she said.
Age Pension, Disability Support Pension and Carer Payment will also be getting a $38.90 rise a fortnight for singles and $58.80 a fortnight for couples.
The maximum rate of pension will go up to $1026.50 a fortnight for singles and $773.80 for each member of a pensioner couple ($1547.60 per couple), including Pension Supplement and Energy Supplement.
Treasurer Jim Chalmers said the indexation will be particularly big this time to keep up with inflation.
“And we know that it won’t solve every problem for everybody, but it’s important that we try and make sure that those payments keep up,” Chalmers said.
“That’s what the indexation is about. It will be welcome even as we acknowledge that times will still be tough for a lot of people.”
The cost of living is also expected to increase more once the temporary cut to the fuel excise tax ends this month.
“It would be too expensive to continue that petrol price relief indefinitely,” Chalmers said.
“I think Australians understand that we’ve inherited a budget which is heaving with a trillion dollars in Liberal Party debt and that means some difficult decisions including this one.”
The Treasurer wrote to the Australian Competition & Consumer Commission (ACCC) to ask it to intensify monitoring of fuel prices with the full excise being re-introduced.
